Implementing 80/20 Logic in Your Power BI Analysis

Have you ever heard of the Pareto Principle? Another name for it is the 80/20 Rule. The rule stipulates that for every 20% of something, you’ll generally receive 80% of the results.

So if we look at this from a business perspective, we’re saying that 20% of our customers should make up 80% of our profits, or 20% of our stores should make up 80% of our sales. That’s how the Pareto Principle works.

Now I wanted to test this in Power BI. I wanted to test this insight on the current data that I’m working on inside my model in Power BI, because obviously, it’s not always going to be exact.

It’s a really good idea to run a test using the technique I showcase in this video, because if it does hold true, then that is where you should be focusing your efforts – from a marketing perspective, from an inventory management perspective. The list goes on in terms of how this type of analysis can point you in the strategic direction that you should be focusing on from a business perspective.

This is an immensely powerful and practical technique that can help you derive great insight and analysis from simply utilizing and implementing Power BI in an effective way.

There is plenty to learn here, not only about how to utilize this specific technique, but also about using DAX formula in your models.